AUD/USD Weekly Price Forecast – The Australian Dollar Launches for the Week

Published: Aug 12, 2022, 14:43 UTC•2min read

The Australian dollar has rallied significantly during the week, flying in the face of the “pro-US dollar attitude” across the Forex world.

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AUD/USD

+0.56

Australian Dollar vs US Dollar Weekly Technical Analysis

The Australian dollar has rallied significantly during the trading week to break above the 0.70 level. Now that we have done this, it looks very bullish from the weekly chart, but you should probably also pay close attention to the fact that the daily candlesticks on both Thursday and Friday show a real hesitation. In other words, it’s probably only a matter of time before we would see some type of pullback.

We are also near the 50 Week EMA, and therefore it’s likely that we would see a certain amount of resistance in that area. Ultimately, the market is likely to see a bit of a pullback from here, but it’s worth noting that the Australian dollar is bucking the trend when it comes to trading against the US dollar, as most other currencies had rather negative-looking weeks.

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That being said, it does not mean that I want to own the Aussie dollar, just that this is one of my least favorite trades. In other words, I’m simply going to search for opportunities on this chart, but from a longer-term perspective, I’m probably going to ignore this chart for the time being. We could get a little bit more follow-through to the upside, and perhaps even an exhaustive candle that we can get short on.

Breaking through the 0.70 level would also be a signal that we are going lower again, perhaps testing the 0.67 level. This has been a relatively bullish candlestick and a nice bounce, but when you look at the overall attitude of the markets, it’s still all about the US dollar at this point, so I do not want to go against it.